Ocean Wilsons (holdings)... Share Discussion Threads

[future financier] 10/6/2011 16:33

I don't see why the threat of inflation creates a need for assets held offshore (denominated in currencies that are every bit as likely to fuffer inflation!). Total non seequitur.

But we bought into this share knowing about the investment portfolio and the consequent discount to NAV - so I guess we just have to live with it. Frustrating I know - but it is a sad fact that the Board will always look after the interests of the major shareholders ahead of the rest of us.

[piedro] 09/6/2011 11:59

Edited: REMOVED

[mw8156] 24/5/2011 14:14

was at the AGM today and a shareholder raised a legitimate suggestion that the Wilson Sons' shares should be distributed in specie; the appropriate response from the senior independent director would have been that the Board would as a whole consider the suggestion rather than his response which was a fairly brisk rebuff; personally, I can see why a portfolio is maintained outside of Brazil given the historical inflation problems in what is still an emerging market...

[piedro] 18/5/2011 10:24

Brazilian port logistics company Wilson, Sons has launched a US$1.8bn investment plan to improve its port, logistics and maritime infrastructure until end-2017, CFO of the company's Brazilian subsidiary, Felipe Gutterres, said in a conference call.
The plan's capital expenditure items include: US$247mn to expand the Tecon Salvador container terminal and Rio Grande container terminal; US$382mn to purchase 40 new tugboats; US$842mn for offshore joint ventures; US$47mn for the Guarujá II shipyard expansion and US$155mn for the company's greenfield site in Rio Grande.
The plan excludes acquisitions and new concessions. For 2011 alone, expenditures will amount to US$260mn, according to the company's quarterly results report. .... ....

[piedro] 16/5/2011 12:39

I note that in November 2008 the valuations were ...

Wilson Sons valuation = £4.10 per OCN share
Investment portfolio = £3.84 per OCN share

... perhaps they should reinvest the 'investment portfolio' in something more useful!

[strollingmolby] 16/5/2011 11:38

Now reiterated by OCN in this morning's IMS:

Wilson Sons valuation = £13.37 per OCN share
Investment portfolio = £ 4.45 per OCN share

Wilson Sons is growing at a fair old lick (revenue +29%, op profit +89%) so the OCN share price will need to appreciate just to maintain the level of discount !

[marknicho] 15/5/2011 19:38

flyfisher - nice one, thanks for posting that.

[flyfisher] 15/5/2011 18:46

wilson Q1 results , released on friday , show growth of 29% over last year and an increase in margins .

look good to me.

[rambutan2] 26/4/2011 11:19

Here's the full annual report, for those who like a browse...

[strollingmolby] 15/4/2011 09:36

Thanks for posting this fly-f. Makes a very convincing rationale for holding here (or Wilsons Sons directly).

SM

[flyfisher] 14/4/2011 11:47

interesting article ,re brazilian shipping.

[neckygiraffe] 04/4/2011 22:36

Did they give a price target?

[jodi17qad] 04/4/2011 15:40

Yes: reassuring. Well found davebowler.

[marknicho] 04/4/2011 11:50

davebowler - thanks for the post.

[davebowler] 04/4/2011 10:34

Seymour view;
Company: Ocean Wilsons Holdings3,5 (OCNW)
Share price: 1,145p
Market cap (£m): £404.9m
Sector: Industrial Transportation
Recommendation: BUY

Synopsis: FY10 profits for Ocean Wilsons and its main operating investment, Wilson Sons, were ahead of our expectations, and the company signalled its confidence in the future by maintaining the full year dividend at 42USc. Ocean Wilsons shares continue to trade at well below the underlying asset value and Wilson, Sons shares are trading at a discount to its Brazilian peers. Investment in Brazilian maritime and oilfield services should ensure strong profits growth, even against the headwind of a strong Real.

Company: Wilson, Sons (WIL, BRWSONBDR009)
Share price: $16.90
Market cap ($m): $1,202.3m
Sector: Industrial Transportation
Recommendation: BUY

Synopsis: Despite the headwinds of higher labour costs, the continued strength of the Brazilian Real and start-up costs, Wilson Sons exceeded our estimate for FY10. The company is investing heavily in ports, offshore oilfield services and shipbuilding. All these divisions reported strong underlying growth and the Logistics division significantly outperformed our expectations. Current investment will underpin further dynamic growth in the next few years.

[piedro] 03/4/2011 12:33

Wilson Sons newsletter:

[jodi17qad] 31/3/2011 21:06

We seem to have a doji today, which indicates market indecision. Brazilian stocks seem to have had a good day and so, perhaps, OCN's fortunes are about to change.

[marknicho] 30/3/2011 19:20

Evening All. Here's my take on the OCN chart FWIW.



1100p looks to have supported previously and would coincide with a return to the long term trendline.

[jodi17qad] 30/3/2011 08:16

Thanks NeckyGiraffe and Westcountryboy.

I suppose that the share price rose at an unsustainable pace and that some retracement was inevitable in the absence of a substantial improvement in performance.

Let's hope that the share price does not fall further.

The share price seems to respond sharply to very low volume.

[westcountryboy] 29/3/2011 21:01

Yesterday's results show that valuations in sterling are being hit by its strength against the dollar. A year ago the value of the investment portfolio was $6.95 ps; now it is $7.45 ps, but the equivalent in sterling is static at £4.66 (£4.67). Also 7% performance in the last year, in dollar terms, is not great.

As for the holding in Wilsons Sons, the price in sterling ps has tracked the rise in the Brazilian Real almost exactly: from R21.8 to R27.8, making a rise from £9.53 to £12.19.

So the total valuation has only risen from £14.20 to £16.85 ps. For whatever reason the share has always traded at a massive discount to this value. So it is no surprise, since the price at last results was about 950p, to find it at about 1150p today.

It's also worth bearing in mind that Wilson Sons' operating profit and eps fell in the last year, and debt significantly increased, though I am relaxed about both developments, seeing them as part of important investment for the future.

[neckygiraffe] 29/3/2011 17:37

I know Seymour Pierce cover them but I haven't seen an update from them taking into account these results.

[jodi17qad] 29/3/2011 17:10

Now that the share price has breached its 200 day moving average,is this the time to sell?

I am surprised at the continued weakness of the share price, given that Brasil is thriving and the company play such an important part in the infrastructure of the country and are so deeply involved in oil and gas exploitation.

Has anyone seen any comments(other than above) or broker opinions?

[strollingmolby] 28/3/2011 16:52

I can assure you there was at least one purchase today - mine! At £11.89, well under the £12.05 quote.

[jodi17qad] 28/3/2011 16:37

With only sales recorded today on LSE and Plusnet (albeit relatively small) it is, perhaps, surprising that the share price appears to have risen marginally, although within the spread.